Paramount offers movies on Seagate hard drives

Viacom Inc unit Paramount is offering some of its movies preloaded on external computer hard drive devices from Seagate in the first arrangement of its kind.

The deal comes as all studios are exploring new methods of movie distribution in the face of declining DVD sales and traditional rental outlets.

Many studios now work with companies like Netflix and Apple Inc's iTunes to offer fans movies for streaming or downloading from the Internet.

Most industry watchers expect TV shows and movies to be delivered via the Web through services like Hulu, YouTube or the media companies' own services like HBO Go.

The new FreeAgent Go 500 gigabyte device will have 21 movies preloaded, including a free offer of Star Trek (2009). Users can unlock access to any of the other 20 movies after paying for a passcode for a price of between $9.99 and $14.99. Other titles available include The Curious Case of Benjamin Button and GI Joe.

Seagate executives said the device, which only works with Microsoft Windows-compatible computers, can hold up to 200 movies.

Computer users typically use external hard drives like Seagate's to back-up their PCs and to keep family photos, music and video clips, and other content safe.